System and method for distribution chain management

ABSTRACT

A system for supply chain management is provided. The system includes two or more manufacturer systems receiving order data, such as data identifying goods that have been ordered for each of two or more warehouses, and generating first and second shipment data, such as data identifying the actual amount of goods that were shipped. A warehouse system receives the order data, such as to allow a warehouse operator to make plans for accommodating the order, and the shipment data, such as to notify the warehouse operator of actual amounts of goods that have been shipped. An order controller system generates the order data and receives the shipment data, such as data identifying goods that are being shipped to the order controller system.

FIELD OF THE INVENTION

The present invention pertains to the field of inventory management.More specifically, the invention relates to a system and method fordistribution change management that allows a single entity to controldistribution through warehouses controlled by multiple entities.

BACKGROUND OF THE INVENTION

Systems for distribution chain management are known in the art. Suchsystems include systems that track orders from manufacturers through awarehouse or warehouses that are controlled by a single entity, fordistribution to retail locations.

While such systems are useful, they do not support distribution throughother than straight distribution chains. Thus, every distribution chainmust be modeled as a manufacturer-warehouse-retail store distributionchain.

SUMMARY OF THE INVENTION

In accordance with the present invention, a system and method fordistribution chain management are provided that overcomes known problemswith existing systems and methods for distribution chain management.

In particular, a system for distribution chain management is providedthat allows architectures other than the manufacturer-warehouse-retailstore architecture to be implemented.

In accordance with an exemplary embodiment of the present invention, asystem for supply chain management is provided. The system includes twoor more manufacturer systems receiving order data, such as dataidentifying goods that have been ordered for each of two or morewarehouses, and generating first and second shipment data, such as dataidentifying the actual amount of goods that were shipped. A warehousesystem receives the order data, such as to allow a warehouse operator tomake plans for accommodating the order, and the shipment data, such asto notify the warehouse operator of actual amounts of goods that havebeen shipped. An order controller system generates the order data andreceives the shipment data, such as data identifying goods that arebeing shipped to the order controller system.

The present invention provides many important technical advantages. Oneimportant technical advantage of the present invention is a distributionchain management system that allows warehouses controlled by multipleentities to be coordinated, so as to decrease shipping costs and storagecosts, and to improve the ability to take advantage of volume discounts.

Those skilled in the art will appreciate the advantages and superiorfeatures of the invention together with other important aspects thereofon reading the detailed description that follows in conjunction with thedrawings.

BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWINGS

FIG. 1 is a diagram of a system for supply chain management inaccordance with an exemplary embodiment of the present invention;

FIG. 2 is a diagram of a system for providing order control inaccordance with an exemplary embodiment of the present invention;

FIG. 3 is a diagram of a system for forecast and planning in accordancewith an exemplary embodiment of the present invention;

FIG. 4 is a diagram of a system for providing warehouse management inaccordance with an exemplary embodiment of the present invention;

FIG. 5 is a diagram of a system for providing distribution functionalityin accordance with an exemplary embodiment of the present invention;

FIG. 6 is a flowchart of a method for supply chain management inaccordance with an exemplary embodiment of the present invention;

FIG. 7 is a flowchart of a method for processing data at a warehousefacility in accordance with an exemplary embodiment of the presentinvention; and

FIG. 8 is a flowchart of a method for reverse logistics in accordancewith an exemplary embodiment of the present invention.

DETAILED DESCRIPTION OF THE INVENTION

In the description that follows like parts are marked throughout thespecification and drawings with the same reference numerals,respectively. The drawing figures are not necessarily to scale andcertain features may be shown in somewhat generalized or schematic formin the interest of clarity and conciseness.

FIG. 1 is a diagram of a system 100 for supply chain management inaccordance with an exemplary embodiment of the present invention. System100 allows a supply chain to be managed from an order controller, whichgenerates purchase order data for one or more external warehouses, suchas those controlled by unaffiliated organizations, in addition topurchase order data for goods that are processed through an internalwarehouse of the order controller.

System 100 includes order controller system 102, forecast and planningsystem 104, manufacturer systems 106 a through 106 n, warehouse systems108 a and 108 b, distribution system 110, and retail systems 112 athrough 112 n, each of which can be implemented in hardware, software,or a suitable combination of hardware and software, and each of whichcan be one or more software systems operating on separate generalpurpose processing platforms. As used herein, a hardware system caninclude discrete semiconductor devices, an application-specificintegrated circuit, a field programmable gate array or other suitabledevices. A software system can include one or more objects, agents,threads, lines of code, subroutines, separate software applications,user-readable (source) code, machine-readable (object) code, two or morelines of code in two or more corresponding software applications,databases, or other suitable software architectures. In one exemplaryembodiment, a software system can include one or more lines of code in ageneral purpose software application, such as an operating system, andone or more lines of code in a specific purpose software application.

Order controller system 102 is coupled to forecast and planning system104, manufacturer systems 106 a through 106 n, warehouse systems 108 aand 108 b, distribution system 110 and retail systems 112 a through 112n. As used herein, the term “couple” and its cognate terms, such as“couples” and “coupled,” can include a physical connection (such as acopper conductor), a virtual connection (such as through randomlyassigned memory locations of a data memory device), a logical connection(such as through logical gates of a semiconducting device), othersuitable connections, or a suitable combination of such connections. Inone exemplary embodiment, systems and components are coupled to othersystems and components through intervening systems and components, suchas through an operating system. The communications media through whichthe systems communicate can be a local area network, a wide areanetwork, a public network such as the Internet, the public switchedtelephone network, a wireless network, a fiber optic network, othersuitable media, or a suitable combination of such media.

Order controller system 102 generates order data and transmits the orderdata to manufacturer systems 106 a through 106 n and warehouse system108 a and 108 b. The order data generated by order controller system 102includes order data for goods to be shipped to external warehousesassociated with each of warehouse systems 108 a and 108 b, and orderdata for goods to be shipped to an internal warehouse affiliated withorder controller system 102. Order controller system 102 generates theorder data in response to data received from warehouse systems 108 a and108 b, distribution system 110, retail systems 112 a through 112 n, andforecast and planning system 104, where these systems do not need todirectly generate the order data. In this manner, order controllersystem 102 can make supply chain management decisions for all entitiesin the supply chain, where each entity can also or alternatively placeorders and order controller system 102 can utilize inventory from suchorders for supply chain management.

Warehouse systems 108 a and 108 b, distribution system 110, retailsystems 112 a through 112 n, and forecast and planning system 104 canalso generate independent order data, including but not limited toplacing orders with manufacturer systems 106 a through 106 n, but thisindependent order data is not reflected in the order data transmittedfrom order controller system 102 to manufacturer systems 106 a through106 n and warehouse systems 108 a and 108 b. In this regard, anyindependent order data generated by warehouse systems 108 a and 108 b,distribution system 110, retail systems 112 a through 112 n, andforecast and planning system 104 that is separate from the order datagenerated by order controller system 102 can be used by order controllersystem 102 to generate order data (either directly or as reflected ininventory data), but is not required to be.

Forecast and planning system 104 generates forecast data, promotiondata, product roll-out data, product replacement data, product deletiondata, and other suitable data, each of which can be used by ordercontroller system 102 to generate the order data. The forecast data,promotion data, product roll-out data, product replacement data, andproduct deletion data transmitted from forecast and planning system 104to order controller system 102 can be used to generate order data formanufacturer systems 106 a through 106 n, where the order data includesinternal order data for shipment of goods to the warehouse affiliatedwith order controller system 102 and external order data for shipmentgoods to warehouse systems 108 a and 108 b.

Order controller system 102 can also receive inventory data fromwarehouse systems 108 a and 108 b. In one exemplary embodiment, theinventory data can be obtained locally, such as by manually verifyingquantities in a warehouse. Other suitable systems can be used togenerate inventory data locally, such as systems that track inventory asit is added to and taken from storage locations in the warehouse. Inaddition, order controller system 102 can receive inventory data fromdistribution system 110. In one exemplary embodiment distribution system110 can be used to assemble goods for delivery to retail locationsassociated with retail systems 112 a through 112 n, such that long termstorage is not typically provided by distribution system 110.Nevertheless, distribution system 110 can be used in conjunction withpromotions, product roll-out, product deletion, or other functions toprovide storage on a short-term basis, such as for several days orweeks. Order controller system 102 receives such inventory data fromdistribution system 110.

Order controller system 102 can also receive data that is used to implyinventory levels. In one exemplary embodiment, order controller system102 can receive purchase order data, point-of-sale data, and write-offor loss data from each of retail systems 112 a through 112 n, such thatorder controller system 102 can estimate inventory levels or implyinventory levels at each of those retail locations, in addition to orinstead of receiving locally compiled inventory data. Likewise,distribution system 110 can provide receiving data, shipping data, andwrite-off or loss data to order controller system 102 so that inventorylevels at distribution system 110 can be determined, in addition to orinstead of receiving locally compiled inventory data. Warehouse systems108 a and 108 b can also provide such receiving data, shipping data, andwrite-off or loss data to order controller system 102, in addition to orinstead of receiving locally compiled inventory data.

Order controller system 102 can also receive shipping data frommanufacturer systems 106 a through 106 n, from warehouse systems 108 aand 108 b and from distribution system 110, such that order controllersystem 102 can map an accurate status of all goods in transit, instorage, or for sale. In this manner, order controller system 102 canfacilitate functions such as reallocation of shipments in transit,reallocation of goods between warehouse systems 108 a and 108 b andinternal warehouse systems of order controller system 102, and othersuitable functions.

Order controller system 102, warehouse systems 108 a and 108 b, anddistribution system 110 can also process order data from retail systems112 a through 112 n and generate shipping data. In one exemplaryembodiment, retail systems 112 a through 112 n can have predeterminedprocesses for placing orders for certain items from order controllersystem 102, for other items from warehouse systems 108 a and 108 b, andfor another class of items from distribution system 110, can provide theorder data through forecast and planning system 104, can provide allorder data to order controller system 102 which can then allocate theorder data to warehouse systems 108 a and 108 b and distribution system110, or other suitable processes can be performed to process the retailorder data.

In operation system 100 provides comprehensive supply chain managementfrom a plurality of manufacturers through a plurality of warehousesystems and one or more distribution systems, to a plurality ofretailers. System 100 allows supply chain management processes to beperformed by an order controller system 102, such that goods provided toretail systems 112 a through 112 n can be improved to provide the lowestprice and to maintain inventory quantities at retail locations withintarget values. System 100 allows two or more unrelated warehousefacilities to be coordinated so as to provide goods to a plurality ofretail locations in a cost effective manner.

For example, system 100 allows warehouse facilities having largequantities of retail products that have been purchased at discount inbulk to be coordinated, so as to realize lower ultimate prices for suchretail products. Likewise, system 100 allows deliveries to retaillocations to be coordinated so as to ensure levels of stock that are notabove or below target levels. System 100 also allows items to be readilyintroduced into retail locations, to be replaced in retail locations, tobe deleted from retail locations, or for other functions to beperformed.

For example, the operator of a plurality of retail systems 112 a through112 n may desire to replace a first type of product with a differentbrand of that product. System 100 can allow such product replacements tobe performed by utilizing existing warehouse system 108 a which may havethe first brand and warehouse system 108 b which may have the secondbrand, such that existing orders for the first brand at manufacturersystems 106 a through 106 n can be coordinated with the provision of thesecond brand by warehouse system 108 b. In this manner, existing stockin retail locations can be phased out in a manner that prevents suchstock from having to be discarded, priced at a discount, or otherwisedisposed of in a cost inefficient manner.

System 100 also allows invoicing to be performed at order controllersystem 102, warehouse systems 108 a and 108 b, distribution system 110,or other suitable locations. Forecast and planning system 104 can directsuch systems to generate payment data in response to invoice data basedon credit balances, debit balances, or other suitable considerations.

FIG. 2 is a diagram of a system 200 for providing order control inaccordance with an exemplary embodiment of the present invention. System200 includes order controller system 102 and internal warehouse ordersystem 202, external warehouse order system 204, implied inventorysystem 206, and invoice control system 208, each of which can beimplemented in hardware, software, or a suitable combination of hardwareand software, and which can be one or more software systems operating ona general purpose processing platform.

Internal warehouse order system 202 can receive one or more of orderdata, inventory data, forecast data, promotion data, product roll-outdata, product replacement data, product deletion data, and othersuitable data and generates order data for an internal warehouseassociated with order controller system 102. In one exemplaryembodiment, internal warehouse order system 202 can use one or moresupply chain parameters to select optimal order data. For example,warehouse system 108 a can have a preexisting obligation to keeppredetermined minimum and maximum quantities in stock, and to deliversuch quantities to a plurality of retail locations. Forecast andplanning system 104 can provide promotion data that would requiresignificantly larger quantities of such goods to be ordered and providedto the plurality of retail locations. Internal warehouse order system202 can identify volume price discount data for such goods from one ofmanufacturer systems 106 a through 106 n, and can place internal ordersfor the excess quantities such that the price break benefit flows to theoperator of order controller system 102. Likewise, other suitablefunctions can be performed to allocate order data between internalwarehouse order data and external warehouse order data.

External warehouse order system 204 can receive one or more of inventorydata, forecast data, promotion data, product roll-out data, productreplacement data, product deletion data, and other suitable data andgenerates external warehouse order data. In one exemplary embodiment,the external warehouse order data can be generated to maintain inventorylevels at warehouses associated with warehouse system 108 a or 108 b atpredetermined minimum and maximum levels. In another exemplaryembodiment, external warehouse order system 204 can receive shippingcost data, such as to reduce shipping cost between manufacturer systems106 a through 106 n and retail locations associated with retail systems112 a through 112 n. In this exemplary embodiment, a product can beavailable from a manufacturer at a plurality of locations. Externalwarehouse order system 204 can determine a reduced shipping cost basedon the volume price data for each manufacturer system 106 a through 106n, warehouse capacity for each of warehouse systems 108 a and 108 b,shipping volume costs between manufacturer systems 106 a through 106 n,warehouse systems 108 a and 108 b and retail systems 112 a through 112n, and other suitable factors.

In another exemplary embodiment, external warehouse order system 204 candetermine that a preferred order size, such as a truckload, of productdelivered to a warehouse system 108 a would save a first amount ofmoney, but would overload the storage capacity of warehouse systems 108a. External warehouse order system 204 can then determine whether theadditional shipping cost to ship the truckload of goods to warehousesystems 108 b would outweigh the benefit obtained from ordering thelarger volume, whether goods can be allocated between warehouse systems108 a and warehouse systems 108 b, order controller system 102, ordistribution system 110 to allow the truckload of goods to be providedto warehouse systems 108 a and maintain the predetermined minimum andmaximum inventory levels, or can perform other suitable functions. Inthis manner, external warehouse order system 204 can optimize order datato one or more external warehouses that have preexisting obligations tomaintain inventory levels and provide delivery services, so as to reducethe cost of goods including shipping costs, and to increase potentialreturn to the operator of order controller system 102.

Implied inventory system 206 receives shipment data, receiving data,loss data, and other suitable data and generates implied inventory data.In one exemplary embodiment, implied inventory system 206 can receivedata from warehouse systems 108 a and 108 b, distribution system 110,retail systems 112 a through 112 n, or other suitable systems that showsquantities received at locations, shipped from locations, lost ordamaged at locations, or other suitable data, and can use such data toupdate implied inventory data levels. Implied inventory system 206 canalso receive local inventory data, such as from manual counting ofinventory levels, and can use such local inventory data to correctimplied inventory data, report on discrepancies between impliedinventory levels and local inventory levels (such as to indicate wherefraud or theft may be occurring), can generate loss or write-off reportsshowing locations at which unusual levels of losses or write-offs areoccurring (such as to indicate management problems, theft or fraud), andcan perform other suitable functions.

Invoice control system 208 receives invoice payment data from forecastand planning system 104 and generates payment data for transmission offunds to one or more of manufacturer systems 106 a through 106 n. In oneexemplary embodiment, invoice control system 208 can receive invoicepayment data from forecast and planning system 104 and can determinewhich of warehouse systems 108 a and 108 b, distribution system 110, orother suitable systems to transmit the invoice payment data to. Othersuitable processes can be performed by invoice control system 208.

In operation, system 200 allows supply chain management to be performedfrom a centralized controller, so as to reduce the cost of ordered goodsincluding costs of shipping, to increase profits, and to ensure thatinventory levels at warehouses, distribution centers, retail locations,or other suitable locations are maintained within predetermined limits.System 200 allows the delivery location of the goods to be changed intransit, such as to accommodate promotions, product roll-out, productreplacement, product deletion, orders, or other suitable data.

FIG. 3 is a diagram of a system 300 for forecast and planning inaccordance with an exemplary embodiment of the present invention. System300 includes forecast and planning system 104 and forecast managementsystem 302, product management system 304, promotion management system306, and invoice management system 308, each of which can be implementedin hardware, software, or a suitable combination of hardware andsoftware, and which can be one or more software systems operating on ageneral purpose processing platform.

Forecast management system 302 provides forecast data to ordercontroller system 102 based on sales data received from retail systems112 a through 112 n. In one exemplary embodiment, forecast managementsystem 302 can also receive season data, temperature data, regionalvariables data, or other suitable data, and can use such data togenerate the forecast data. For example, forecast management system 302can receive temperature data and season data indicating thattemperatures are going to become colder, and can use such data toforecast a greater need for hot foods and hot drinks. In anotherexemplary embodiment, forecast management system 302 can receive seasondata, such as data identifying one or more seasonal events or othersuitable events, and can generate forecast data for goods that may bepurchased at higher volumes during such seasons. In this exemplaryembodiment, forecast management system 302 can also use regional data tomodify or generate such forecast data. For example, a large percentageof a first demographic group may typically order a first type of holidaygood, whereas in a second geographical region, a different type ofholiday good may be ordered by a different demographic group. Forecastmanagement system 302 allows forecast data to be generated andtransmitted to an order controller system 102 or other suitablelocations so that purchase decisions for such goods can be madesufficiently in advance of such needs to allow the orders to be placedand for the goods to be obtained at optimal cost.

For example, forecast management system 302 can include order lead timedata that is provided from manufacturer systems 106 a through 106 n,which provides price break data associated with lead times for orders.In this exemplary embodiment, forecast management system 302 can provideforecast data so as to realize price savings that offset potentiallosses from ordering too many of such goods. In another exemplaryembodiment, forecast management system 302 can be implemented withinorder controller system 102 or other suitable systems.

Product management system 304 generates product roll-out data, productreplacement data, product deletion data, or other suitable product data.In one exemplary embodiment, product management system 304 can be usedto introduce or roll-out a new product to a plurality of retaillocations. Such product roll-out data can be for all retail locations,retail locations in a certain geographical area, or based on othersuitable criteria. Product management system 304 can include shelf spacefunctionality that determines optimal shelf space placement. In thisexemplary embodiment, product management system 304 can determinewhether existing shelf space exist at retail locations for a productthat is being rolled-out, whether other products will need to bereplaced or deleted to make space for the rolled-out product, or othersuitable functions.

Product management system 304 can also generate product replacement datasuch as in response to replacement of a first product with a differentbrand of that product, replacement of the first product with a differentpackage configuration for that product, or other suitable processes.Such product replacement data can be generated to identify one or moreretail locations at which the product is being replaced, such as toprevent such retail locations from having to stock multiple brands ofthe same product, multiple package configurations of the same product,or other situations that may adversely affect marketing.

Product management system 304 can also generate product deletion data,such as to delete products to make shelf space for other products thatare being rolled-out, to delete products that have not been commerciallysuccessful, and other suitable data. Such deletion data can becoordinated with retail locations so as to allow the retail locations todelete product in a manner that is coordinated with preexistinginventory levels at warehouse systems 108 a and 108 b, manufacturingorder commitments, or other suitable data. Product management system 304can also provide data to order controller system 102 that allows ordercontroller system 102 to determine the optimal product roll-out, productreplacement, product deletion, or other suitable functions. Likewise, inone exemplary embodiment, product management system 304 can beimplemented within order controller system 102 or other suitablesystems.

Promotion management system 306 generates promotion data and transmitsthe promotion data to order controller system 102. In one exemplaryembodiment, promotion data can include data that identifies increasedsales targets based on advertising campaigns, coupons that will bedistributed, and other suitable data. Promotion management system 306thus provides forecast data or other suitable data to order controllersystem 102 that allows additional quantities to be ordered to avoid anout-of-stock condition at retail locations. Promotion management system306 can also provide invoice data to order controller system 102 orother suitable systems, such as where the promotion has been coordinatedin advance with one or more manufacturer systems 106 a through 106 n,where the manufacturer is providing the incentive, coupon, advertising,and can perform other suitable functions.

Invoice management system 308 provides invoice payment data to ordercontroller system 102, warehouse systems 108 a and 108 b, distributionsystem 110, or other suitable systems. In one exemplary embodiment,invoice management system 308 can generate invoice payment data based onpreexisting obligations of parties, optimal payment data, credit data,or other suitable data, so as to reduce the cost of goods. For example,invoice management system 308 can coordinate credit facility data withinvoice payment data, such as where a credit facility is used toaccommodate the lag between when payment is due to manufacturer systems106 a through 106 n and the time when proceeds are received from retailsystems 112 a through 112 n.

In operation, system 300 allows forecast and planning to be performed ina system for supply chain management. System 300 can be implemented byan organization for a plurality of retail locations, by a supply chainorder controller system, or in other suitable locations or by othersuitable systems. In this manner, system 300 allows supply chainmanagement to be improved by decreasing product cost, shipping costs,maintaining predetermined inventory levels in warehouses, distributioncenters, retail locations, and other suitable functions.

FIG. 4 is a diagram of a system 400 for providing warehouse managementin accordance with an exemplary embodiment of the present invention.System 400 includes inventory system 402, receiving system 404, shippingsystem 406, and invoice control system 408, each of which can beimplemented in hardware, software, or a suitable combination of hardwareand software, and which can be one or more software systems operating ona general purpose processing platform.

Inventory system 402 receives local inventory data, implied inventorydata, or other suitable data, and provides inventory data to an ordercontroller system 102 or other suitable systems. In one exemplaryembodiment, inventory system 402 also tracks minimum and maximuminventory levels, cost allowances for exceeding such minimum or maximumlevels, or other suitable data. Inventory system 402 can also generateprice discount data, such as where an operator of warehouse system 108 aor warehouse system 108 b obtains price discounts and wants to providean incentive for obtaining increased inventory requirements to anoperator of order controller system 102. In this exemplary embodiment,warehouse system 108 a or warehouse system 108 b may be operated bycompetitors, such that warehouse system 108 a may wish to decrease thereliance on warehouse system 108 b by offering goods at lower prices toorder controller system 102. In this exemplary embodiment, if warehousesystems 108 a and 108 b each have a minimum and maximum inventory levelof X and Y, respectively, warehouse systems 108 a may offer to storemore than Y units and to decrease the cost per unit of the additionalunits to order controller system 102 so as to ensure that warehousesystems 108 b has inventory maintained at the minimum X unit level.Inventory system 402 can also process purchase order data, such as togenerate purchase order data independent of order controller system 102,to accommodate purchase order data received from order controller system102 in inventory management, or for other suitable purposes. Inventorysystem 402 can also provide write-off or loss data to order controllersystem 102. Other suitable processes can also be performed.

Receiving system 404 generates receiving data for goods received frommanufacturers. Receiving system 404 can provide the receiving data toorder controller system 102 or other suitable systems.

Shipping system 406 provides shipping data to order controller system102 or other suitable systems. In one exemplary embodiment, shippingsystem 406 can include shipping time and date data, volume data, anidentification of the locations to which the shipment is being made, orother suitable data.

Invoice control system 408 receives invoice payment data, such as fromforecast and planning system 104, and generates payment data to one ormore manufacturer systems 106 a through 106 n. In one exemplaryembodiment, invoice control system 408 can coordinate with internallygenerated invoice payment data, so as to allocate costs accordingly toorder controller system 102, forecast and planning system 104, or othersuitable sources. In this exemplary embodiment, invoice control system408 can be used to allocate the cost of goods to order controller system102 or forecast and planning system 104 based upon predetermined pricearrangements where a warehouse system 108 a or 108 b has obtained a bulkdiscount price from a manufacturer system 106. For example, the operatorof warehouse system 108 may have a preexisting commitment to providegoods at a $X per unit to retail locations, based on a cost of $Y perunit from a manufacturer. The operator of warehouse system 108 may thenobtain a cost of <$Y per unit from the manufacturer for ordering inlarger quantities. Invoice control system 408 can allocate payments tomanufacturer systems based on such factors, so as to ensure that theoperator of forecast and planning system 104, order controller system102, or other suitable systems are not given the <$Y per unit cost butrather the $Y per unit cost.

In operation, system 400 allows a warehouse system to control inventory,goods received, goods shipped, and invoicing so as to decrease costs forthe warehouse system. System 400 allows inventory levels to becontrolled in accordance with preexisting arrangements between parties,and further allows an operator of a warehouse facility to realize costsavings through advantageous ordering quantities or other suitableconditions.

FIG. 5 is a diagram of a system 500 for providing distributionfunctionality in accordance with an exemplary embodiment of the presentinvention. System 500 includes distribution system 110 and retailerorder processing system 502, warehouse interface system 504, ordercontroller interface system 506, and invoice control system 508, each ofwhich can be implemented in hardware, software, or a suitablecombination of hardware and software, and which can be one or moresoftware systems operating on a general purpose processing platform.

Retailer order processing system 502 receives orders from a plurality ofretail locations and processes the order data to ensure that goods willbe shipped in response to the orders. In one exemplary embodiment,retailer order processing system 502 generates order data for warehousesystems 108 a and 108 b and order controller system 102, so as to allowshipment of goods to be adjusted based upon actual retail order data.

Warehouse interface system 504 provides purchase order data fromretailer locations to one or more warehouses. In one exemplaryembodiment, distribution system 110 can be operated by a distributioncenter that receives goods and assembles or processes them for sale atretail locations without long-term storage. Warehouse interface system504 can be used to identify quantities of goods that must be obtainedfrom warehouse systems 108 a or 108 b based on purchase order datareceived from retail locations associated with retail systems 112 athrough 112 n or other suitable data, so that the raw materials forassembly can be provided to a distribution center associated withdistribution system 110.

Order controller interface system 506 provides purchase order data fromretailer locations to an order controller. In one exemplary embodiment,distribution system 110 can be operated by a distribution center thatreceives goods and assembles or processes them for sale at retaillocations without long-term storage. Order controller interface system506 can be used to identify quantities of goods that must be obtainedfrom order controller system 102 based on purchase order data receivedfrom retail locations associated with retail systems 112 a through 112 nor other suitable data, so that the raw materials for assembly can beprovided to a distribution center associated with distribution system110. Order controller interface system 506 also provides storageavailability data, inventory data, or other suitable data associatedwith short term storage capabilities of a distribution facility, such asto facilitate product rollout, product promotions, product replacement,or other functions.

Invoice control system 508 receives invoice payment data, such as fromforecast and planning system 104, and generates payment data to one ormore manufacturer systems 106 a through 106 n. In one exemplaryembodiment, invoice control system 508 can coordinate with internallygenerated invoice payment data, so as to allocate costs accordingly toorder controller system 102, forecast and planning system 104, or othersuitable sources. In this exemplary embodiment, invoice control system508 can be used to allocate the cost of goods to order controller system102 or forecast and planning system 104 based upon predetermined pricearrangements.

In operation, system 500 allows a distribution center to manageordering, assembly, shipping, and payment for goods shipped to retaillocations. System 500 allows the amount of time that goods are beingheld by a distribution to be reduced, and also allows temporary storagefacilities at distribution centers to be utilized wherein necessary.

FIG. 6 is a flowchart of a method 600 for supply chain management inaccordance with an exemplary embodiment of the present invention. Method600 allows an order controller or other suitable systems to controlsupply chain management in a system where multiple independent warehousefacilities can be used.

Method 600 begins at 602 where inventory data is received. The inventorydata can include local inventory data, implied inventory data, or othersuitable inventory data. The method then proceeds to 604.

At 604 forecast data is received. Forecast data can include data derivedfrom moving averages of previously sold quantities from retaillocations, forecast data derived from regional factors, seasonalfactors, temperature factors, or other suitable forecast data. Themethod then proceeds to 606.

At 606 promotion data is received. In one exemplary embodiment, thepromotion data can identify types of goods for which an advertisingcampaign is being provided, the types of incentives being provided suchas discounts or manufacturers coupons, increased quantities that shouldbe provided to compensate for increased demand generated through thepromotional campaign, or other suitable promotional data. The methodthen proceeds to 608.

At 608 product roll-out data is received. In one exemplary embodiment,the product roll-out data can identify one or more regions, products,locations, or other suitable data at which new product will berolled-out. The product roll-out data can also include a replacementtime schedule, such as identifying targets for rolled-out products. Themethod then proceeds to 610.

At 610 product replacement data is received. In one exemplaryembodiment, the product replacement data can identify a different brandfor an existing product, a different package configuration for anexisting product, or other suitable product replacement data. Theproduct replacement data can also include a replacement time schedule,such as identifying targets for replacement product. The method thenproceeds to 612.

At 612 product deletion data is received. The product deletion data canidentify target dates for deletion of products from stores, a sequenceof stores from which the products are to be deleted, a sequence ofregions from which the products are to be deleted, or other suitabledeletion data. The method then proceeds to 614.

At 614, order data is generated. In one exemplary embodiment, the orderdata can first be generated to accommodate expected standard sales fromretail locations, and then to accommodate the promotion data, productroll-out data, product replacement data, product deletion data, or othersuitable data. In this exemplary embodiment, if store locations have notbeen identified for product roll-out, replacement, or deletion, theorder data can be generated based on existing inventory levels, thetarget for product roll-out, replacement, or deletion, cost data forgoods available through manufacturers or from inventory, and othersuitable data. The method then proceeds to 616.

At 616, order data is allocated to two or more warehouses. In oneexemplary embodiment, the order data can be allocated based uponexisting inventory levels and minimum and maximum inventory levels thatcould be stored at each warehouse. In another exemplary embodiment, theorder data can be allocated based on shipping cost and the geographiclocation of manufacturer facilities and warehouses. Order data can beallocated in other suitable manners. The method then proceeds to 618.

At 618 shipping data is generated to retail stores. In one exemplaryembodiment, the shipping data can include cost data, shipping routedata, or other suitable data. For example, different potential routescould be available for shipping of a product from a manufacturer to aretail location. The shipping data can be generated at 618 based uponorder data, order allocation data to warehouses, inventory data, andother suitable data. The method then proceeds to 620.

At 620 it is determined whether out-of-stock data has been received. Inone exemplary embodiment, retail locations can generate out-of-stockdata and can provide the out-of-stock data to order controller system102 or other suitable systems, such as where deliveries from warehousesystems 108 a and 108 b are made for such out-of-stock goods on aschedule that will not allow the goods to be restocked in a timelymanner, or based on other suitable factors. If it is determined thatout-of-stock data has been received the method then proceeds to 622 andthe goods are shipped, such as before the normal shipping time for suchgoods from a warehouse. The method then proceeds to 624 through 630 inparallel. Otherwise if it is determined at 620 that out-of-stock datahas not been received, the method proceeds directly to 624 through 630.

At 624 through 630 shipment of product to retail locations occurs inparallel as suitable. At 624, product is shipped from the manufacturerto a warehouse to a retail location. In this exemplary embodiment, theshipping occurs from a manufacturer to a warehouse and then it isdelivered from the warehouse directly to a retail location using thewarehouse arranged delivery facilities.

At 626, product is shipped from a manufacturer to a first warehouse andthen to a second warehouse and then to retail location. In thisexemplary embodiment, the first warehouse can be a warehouse operated byan order controller system, such as where the cost of shipping throughthe order controller system warehouse is less, where storage space isunavailable at the second warehouse until a period of time after itwould have been delivered from a manufacturer system, or based on othersuitable factors.

At 628, the product is shipped from a manufacturer to a warehouse to adistribution center to a retail location. In this exemplary embodiment,the distribution center can be used to provide the goods to retaillocations, the distribution center can be used to assemble the productwith other products into a final product, or other suitable processescould be used.

At 630, the product is shipped from a manufacturer to a first warehouseand then to a second warehouse and then to a distribution center andthen to a retail location. In this exemplary embodiment, shipment to twoor more different warehouses can be used in order to optimize cost,availability, or other suitable factors.

In operation, method 600 allows order data to be generated toaccommodate forecast, promotions, product roll-out, product replacement,product deletion, inventory levels, orders, out-of-stock conditions, orother suitable factors. Method 600 allows supply chain management to beperformed from a centralized location in a manner that reducesout-of-stock conditions, reduces prices for cost of goods, and performsother suitable functions.

FIG. 7 is a flowchart of a method 700 for processing data at a warehousefacility in accordance with an exemplary embodiment of the presentinvention. Method 700 allows ordering of products and receiving ashipment of products for warehouse facility to be improved, so as toreduce costs of goods, increase quality, and perform other suitablefunctions.

Method 700 begins at 702 where purchase order data is received. In oneexemplary embodiment, the purchase order data can be received from anorder controller or other suitable centralized ordering locations. Inanother exemplary embodiment, the purchase order data can be receivedbased on ordering for the warehouse that is performed in conjunctionwith obligations to an order controller, a forecast and planning systemor other suitable systems. The method then proceeds to 704.

At 704 product is received and invoice data is received. In oneexemplary embodiment, the product can be received with invoice data.Likewise, the invoice data can be transmitted in advance of the productbeing received, and a delivery time and other suitable data can beprovided with the invoice data. The method then proceeds to 706.

At 706 received product data is transmitted. In one exemplaryembodiment, the received product data can include a verification of theactual quantities received, the time at which an invoice shipment wasreceived, or other suitable data. The method then proceeds to 708.

At 708 it is determined whether the received quantity equals the amounton a purchase order or invoice. If it is determined that the receivedquantity equals the purchased order or invoice quantity, then the methodproceeds to 714. Otherwise the method proceeds to 710 where adiscrepancy report is generated. In one exemplary embodiment, thediscrepancy report can include loss or write-off data, such asidentifying product that was damaged in transit, product that wasdamaged during the process of receiving or other suitable data. Themethod then proceeds to 712 where a discrepancy report is transmitted,such as to an order controller, or other suitable locations. The methodthen proceeds to 714.

At 714 store shipping and order data is received. In one exemplaryembodiment, the store shipping and order data can be retail locationorder data and retail location shipping data that identifies the amountsthat were shipped to a retail location, the amounts that were ordered bythe retail location or other suitable data. The method then proceeds to716.

At 716 the product is shipped to a retail location. In one exemplaryembodiment, the product can be shipped directly, through a distributioncenter, or in other suitable methods. The method then proceeds to 718.

At 718 local inventory data is transmitted. In one exemplary embodiment,the local inventory data can include a hand count data, data generatedautomatically by automated inventory systems, or other suitable data.The method then proceeds to 720.

At 720 shipped product data is transmitted. In one exemplary embodiment,ship product data can include products shipped to one or more retaillocations, distribution centers, or other suitable locations. The methodthen proceeds to 722.

At 722 lost or damaged product data is transmitted, such as to adistribution controller. In one exemplary embodiment, the lost ordamaged product data can be actual data, it can be inferred based ondiscrepancies between product that has been shipped to a location andwas shipped from a location, or other suitable processes. The methodthen proceeds to 724.

At 724 invoice payment data is received. In one exemplary embodiment,the invoice payment data can include data that indicates that theinvoice should be paid by the operator at the warehouse system. In thisexemplary embodiment, the invoice payment data can also include creditdata, such as requiring that a credit for the organization be used topay for the invoice, or other suitable processes. The method thenreturns to 702.

In operation, method 700 allows a warehouse system to track goods thathave been received and shipped, to accommodate purchase order data fromthird party control organizations, and to perform other processes in asupply chain management system that includes two or more affiliatedwarehouses. System 700 also allows such warehouse organizations tooptimize potential revenue by participating in such systems.

FIG. 8 is a flowchart of a method 800 for reverse logistics inaccordance with an exemplary embodiment of the present invention. Method800 allows an order controller and a supply chain management system touse reverse logistics to optimize the cost of goods, shipping costs, toaccommodate promotions, product rollout, product deletions, productreplacements, or to perform other suitable functions.

Method 800 begins at 802 where warehouse and distribution centerinventory data are received. In one exemplary embodiment, warehouse datacan include actual or implied inventory levels, inventory minimum andmaximum levels, and other suitable data. Distribution center inventorydata can include available short-term inventory space data, actualinventory data, implied inventory data, or other suitable data. Themethod then proceeds to 804.

At 804 warehouse inventory data and distribution inventory data iscompared. The method then proceeds to 806 where it is determined whetherit is necessary to transfer a product between warehouses. In oneexemplary embodiment, the transfer of product between warehouses can beperformed in order to increase warehouse space at a first warehouse toaccommodate a larger shipment than would be able to be accommodated, soas to realize cost savings for the cost of the product. In anotherexemplary embodiment, product can be transferred between warehouses toaccommodate product rollout, product deletion, product replacement, orother suitable functions. If it is determined at 806 that producttransfer between warehouses is not required the method proceeds to 810.Otherwise, the method proceeds to 808 where shipping data is generatedand transmitted to an appropriate location, such as a warehouse, ashipper, or other suitable locations. The method then proceeds to 810.

At 810 it is determined whether the product needs to be transferred to acontroller. In one exemplary embodiment, the operator of the ordercontroller can also include warehouse space that is under the operator'scontrol, so decisions can be made to transfer goods to the operator torealize lower cost of goods shipped or stored at the warehouse, or basedon other suitable factors. If it is determined at 810 that productshould be transferred to or from the product controller, the method thenproceeds to 814. Otherwise, the method proceeds to 812 where shippingdata is generated and transmitted to the affected parties. The methodthen proceeds to 814.

At 814 it is determined whether products should be transferred to adistribution center. In one exemplary embodiment, temporary storage at adistribution center can be used to relieve storage limitations at awarehouse, at the product controller, or in other suitable locations. Ifit is determined that the product should not be transferred to thedistribution center, the method proceeds to 818 and terminates.Otherwise, the method proceeds to 816 and shipping data is generated andtransmitted to appropriate parties.

In operation, method 800 facilitates reverse logistics or other suitableprocesses that are used to optimize storage of product. Method 800 thusallows storage space at warehouse facilities, at an internal warehouseoperated by the supply chain management controller, at a distributioncenter, or at other suitable facilities to be improved so as tofacilitate product rollout, product promotion, product replacement,product deletion, decrease cost of goods, or perform other suitablefunctions.

Having thus described exemplary embodiments of the invention, it will beapparent that further alterations, modifications, and improvements willalso occur to those skilled in the art. Such alterations, modifications,and improvements, though not expressly described or mentioned above, arenonetheless intended and implied to be within the spirit and scope ofthe invention. Accordingly, the foregoing discussion is intended to beillustrative only; the invention is limited and defined only by thevarious following claims and equivalents thereto.

1-20. (canceled)
 21. A coordinated database system for managing supplychain logistics data comprising: a plurality of manufacturer databasesystems receiving order data and transmitting internal warehouseshipment data to an internal warehouse database system and externalwarehouse shipment data to an external warehouse database system; theinternal warehouse database system receiving the internal warehouseshipment data and generating internal warehouse inventory data; theexternal warehouse database system receiving the external warehouseshipment data and generating external warehouse inventory data; ordercontroller means for generating the order data and receiving theinternal warehouse shipment data, the external warehouse shipment data,the internal warehouse inventory data and the external warehouseinventory data, the order controller means further comprising: internalwarehouse order system means for determining inventory levels at aninternal warehouse and generating shipment data for shipments from theinternal warehouse to a plurality of retail locations; and externalwarehouse order means for determining inventory levels at an externalwarehouse and generating shipment data for shipments from the firstwarehouse to the plurality of retail locations; and wherein the ordercontroller means is associated with the internal warehouse and givespriority to shipments to the plurality of retail locations from theinternal warehouse over shipments from the external warehouse.
 22. Thecoordinated database system for managing supply chain logistics data ofclaim 21 further comprising implied inventory means for generatingimplied inventory data from shipment data and historical inventory data.23. The coordinated database system for managing supply chain logisticsdata of claim 21 further comprising forecast management means forreceiving sales data from the plurality of retail locations andgenerating forecast data, where the order controller means receives theforecast data and generates the order data based on the forecast data.24. The coordinated database system for managing supply chain logisticsdata of claim 21 further comprising product management means forreceiving new product data and retail store location data and generatingproduct replacement data for the plurality of retail locations, wherethe order controller means receives the product replacement data andgenerates the order data based on the product replacement data.
 25. Thecoordinated database system for managing supply chain logistics data ofclaim 21 further comprising promotion management means for receivingpromotion data and retail store location data and generating productpromotion data for the plurality of retail locations, where the ordercontroller means receives the product promotion data and generates theorder data based on the product promotion data.
 26. The coordinateddatabase system for managing supply chain logistics data of claim 21further comprising product management means for receiving new productdata and retail store location data and generating product replacementdata for the plurality of retail locations, where the order controllermeans receives the product replacement data and generates the order databased on the product replacement data.
 27. The coordinated databasesystem for managing supply chain logistics data of claim 21 furthercomprising reverse logistic means for receiving new product data andretail store location data and generating product replacement data forthe plurality of retail locations, where the order controller meansreceives the product replacement data and generates the order data basedon the product replacement data.
 28. The coordinated database system formanaging supply chain logistics data of claim 21 further comprising: adistribution center database system receiving the internal warehouseshipment data and distribution center shipment data and generatingdistribution center inventory data; the order controller means also forreceiving the distribution center shipment data and the distributioncenter inventory data, the order controller means further comprising:distribution center order means for determining inventory levels at adistribution center and generating shipment data for shipments from thedistribution center to the plurality of retail locations; and whereinthe order controller means is associated with the distribution centerand gives priority to shipments to the plurality of retail locationsfrom the distribution center over shipments from the internal warehouseor the external warehouse.
 29. The coordinated database system formanaging supply chain logistics data of claim 28 wherein the ordercontroller means further comprises distribution center order means forreceiving order data from the plurality of retail locations andgenerating shipment data for shipments from the distribution center tothe plurality of retail locations
 30. A method for managing a supplychain database comprising: receiving external inventory data at an ordercontroller database, where the external inventory data is associatedwith inventory data from a third party warehouse database; receivinginternal inventory data at the order controller database, where theinternal inventory data is associated with inventory data from awarehouse database associated with the order controller; receiving orderdata at the order controller database; and generating external orderdata and internal order data in response to the order data, the externalinventory data and the internal inventory data, where priority is givento filling the order data with the internal inventory data before usingthe external inventory data.
 31. The method of claim 30 furthercomprising receiving inventory data from a plurality of retail databasesystems at the order controller database and generating the externalorder data and the internal order data in response to the order data,the external inventory data, the internal inventory data, and theinventory data for the plurality of retail database systems, wherepriority is given to filling the order data with the internal inventorydata before using the external inventory data.
 32. The method of claim30 further comprising receiving inventory data from a plurality ofretail database systems, each associated with a retail location, at theorder controller database and generating the external order data and theinternal order data in response to the order data, the externalinventory data, the internal inventory data, and the inventory data forthe plurality of retail database systems, where priority is given tofilling the order data based on a shorter of a distance between each ofthe plurality of retail locations and the external warehouse or theinternal warehouse.
 33. The method of claim 32 further comprisingreceiving product promotion data at the order controller database andgenerating the external order data and the internal order data inresponse to the order data, the external inventory data, the internalinventory data, and the product promotion data, where priority is givento filling the order data based on the product promotion data and ashorter of a distance between each of the plurality of retail locationsand the external warehouse or the internal warehouse.
 34. The method ofclaim 32 further comprising receiving product rollout data at the ordercontroller database and generating the external order data and theinternal order data in response to the order data, the externalinventory data, the internal inventory data, and the product rolloutdata, where priority is given to filling the order data based on theproduct rollout data and the inventory of each of the plurality ofretail database systems, so as to ensure that there is adequate spaceavailable for a product associated with the product rollout data. 35.The method of claim 32 further comprising receiving product replacementdata associated with a replacement product at the order controllerdatabase and generating the external order data and the internal orderdata in response to the order data, the external inventory data, theinternal inventory data, and the product replacement data, wherepriority is given to filling the order data based on the productreplacement data and the inventory of each of the plurality of retaildatabase systems, so as to ensure that there is no overlap between adiscontinued product and the replacement product.
 36. The method ofclaim 32 further comprising receiving product deletion data associatedwith a deleted product at the order controller database and generatingthe external order data and the internal order data in response to theorder data, the external inventory data, the internal inventory data,and the product deletion data, where priority is given to filling theorder data based on the product deletion data and the inventory of eachof the plurality of retail database systems, so as to ensure that adeleted product is removed in a predetermined sequence from the retaillocations.
 37. A system for supply chain database management comprising:a plurality of manufacturer database systems receiving order data andgenerating first and second warehouse shipment data; a warehousedatabase system receiving the order data and the first warehouseshipment data; a forecast and planning database system generatingforecast data; and an order controller database system receiving theforecast data and the first and second warehouse shipment data andgenerating the order data, the order controller database system furthercomprising: an internal warehouse order database system generatinginternal warehouse order data for a warehouse that is operated by anoperator of the supply chain management system; an external warehouseorder database system generating external warehouse order data for awarehouse that is not operated by the operator of the supply chainmanagement system; and an implied inventory database system receivingshipping data, receiving data, and loss data, and generating impliedinventory data.
 38. The system of claim 35 wherein the forecast andplanning database system further comprises product management means forgenerating one or more of the group comprising product rollout data,product deletion data, and product replacement, data wherein the ordercontroller system receives the one or more of the product rollout data,the product deletion data, and the product rollout data and generatesthe order data in response to the one or more of the product rolloutdata, the product deletion data, and the product rollout data.
 39. Thesystem of claim 35 wherein the forecast and planning database systemfurther comprises promotion management means for generating productpromotion data, wherein the order controller system receives the productpromotion data and generates the order data in response to the productpromotion data.